After adopting their version of the state’s budget, the House adjourned today for their Spring Break – they’ll be back on April 5.
The House-adopted $9.8 billion budget includes $1.5 million in one-time funding to support COVID relief/recovery grants at the SC Arts Commission. Here are all the details.
Arts Agency Base Budget – Level Funding
First, let’s talk about the SC Arts Commission’s annual budget which includes its various standard grant programs and services. All of those will not see an increase, nor a decrease – they are level funded in the House version of the budget (adopted 99-15). This funding comes from recurring revenue – monies expected every year. While the agency requested increases in both its grant program and arts education, those requests were not included in the budget. That’s not a bad thing though. This was a very lean state budget. The House only had about $180 million in new, recurring, money to work with – last year they had almost $1 billion. Coming out with level funding should be seen as a “win” this year.
Arts COVID Relief Grants – $1.5 million
While the state had a small amount of recurring revenue to work with, they had over $700 million in nonrecurring revenue (one-time). These funds typically go to items that are temporary and are only funded for one year – capital needs, large temporary programs, etc. The vast majority ($500m) went a reserve account in the event that the state’s economy slows later this year due to the pandemic. The rest was split between various agencies and needs.
This includes the SC Arts Commission, which had a one-time increase of $1.5 million appropriated in this portion of the budget for grants (adopted 105-11). The agency intends on using these funds for COVID relief/recovery (read our Issue Brief here). Look to the agency for more information once these funds are adopted by the Senate and the Governor.
Dive Deeper: Here is the full budget document. Here is the specific section for the $1.5m increase (Part 1B, Section 118.18(b)9). Here is the SC Arts Commission’s agency budget (Part 1A, Section 28 – level funding).
If you’re really brave and have a little over 15 hours to kill, you can watch both days of budget debate on the Statehouse website (March 22 and 23).
Not Done Yet
This funding is not yet 100% secured for the arts. The Senate still has to approve their version of the budget, using the House version as the starting point, and then the House and Senate have to work out their differences between the two versions. Then, the Governor has to sign it. But there are two factors impacting this: more state revenue, and the American Rescue Plan funding.
More State Revenue?
The state’s Board of Economic Advisors (BEA) will release updated economic forecast data, including state revenue projections, on April 15. It is widely held that the state will actually have more revenue to work with – potentially over $400 million more, most of it recurring. If that is the case, the budget, which will be in the Senate at this point still, could see drastic changes, but the arts are in a good place by being in the budget already. The Senate is expected to wait until this forecast is issued before they debate the budget. Oh, but also the federal government has extended the tax filing deadline again this year to May, which means we may not have a clear picture of state revenues even on April 15.
The American Rescue Plan (ARP)
The ARP will send over $4 billion in one-time funding to South Carolina between the Legislature and every city and county. Those funds will most likely follow a similar process as the budget. Those funds are intended for COVID relief/recovery, so that process could impact how the Legislature approaches its spending over all. The SCAA is also pushing for nonprofit inclusion in any state-level relief offered through ARP funds.
Bottom Line: We’ve got a long road ahead of us, advocates, but we’re starting off on the right foot.
